TSB has returned with its bank switching offer and this time, it has increased its cash bonus as it tries to tempt customers to move banks.
You can get up to £190 when you switch to the provider (£100 upfront and up to £90 in monthly cashback), plus a lifestyle reward – making it the best switch bonus on the market. TSB's previous deal back in June offered up to £160, giving £100 upfront and £60 through its monthly cashback scheme.
The comeback from TSB contradicts the recent movement in the bank-switching market, as we've seen First Direct's £175 deal and Lloyds' switch offer disappear in the past couple of weeks. It means if you see a deal you like, you might have to move quickly.
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As always, the key is to check the small print and be aware of any hoops you’ll need to jump through, before deciding if the deal is worth it. Switching banks should be more about whether the bank meets your needs than the incentives on offer. Packaged bank accounts – where you pay a monthly fee in return for a range of extra perks – have become more popular so it’s not surprising to see them offered as part of bank switching deals.
So, what is TSB offering, how do you make the switch and how does it compare to the rest of the market?
TSB bank switching offer explained
New customers who switch to TSB’s Spend & Save account (no fee) or its Spend & Save Plus account (£3 monthly fee) can get up to £190, plus a free reward.
TSB’s deal is broken down into three legs. Here’s how to complete the full switch.
To get £100
You will need to complete the following steps before 27 September to receive £100 from TSB:
- Switch to TSB using the bank’s switch service
- Make at least five debit card payments using your TSB account
- Log into the TSB mobile banking app at least once
The £100 bonus will be paid to you between 15 October and 25 October, provided you manage to complete the steps above in time.
To get an extra £90
To get a further £90, TSB is asking customers to take one more step. You will need to make at least 20 debit card payments, each month, for six months.
Each month you qualify, you will receive £15 cashback – £90 in total if you qualify for the full six months. The bonus is automatically paid into your TSB account the following month.
You must be eligible for the £100 bonus to be eligible for the £90 free cash.
Note: both of TSB’s eligible current accounts (Spend & Save or Spend & Save Plus) offer £5 cashback a month when you make 20 payments a month, anyway. But, as part of its switch deal, the bank is tripling that cashback, to £15.
An extra reward from TSB
TSB is also adding a shiny reward as well as its cash bonus. You can pick one reward from the three on offer:
- A night away for two people with a choice of 90 to 100 hotels (including the Mercure, Village Hotels, Starboard and Crest hotels).
- A NOW Entertainment membership for six months for the Entertainment bundle.
- Two Odeon cinema tickets every month for three months
To get your hands on one of the rewards, you’ll need to be eligible for the £100 bonus and make a minimum of 20 direct debit payments in March 2025. Once you qualify, you can pick your reward in April 2025.
To be eligible for the reward you’ll need to keep your TSB account open until the end of March 2025.
Note: You do not qualify for the TSB cash bonus and reward if you have taken advantage of a cash incentive with the bank since 1 October 2022.
What perks come with TSB's current accounts?
TSB’s current accounts included in the switch deal are packaged bank accounts, which means they come with a host of perks.
TSB’s Spend & Save account current account is free and you get access to My TSB rewards. This includes discounts on takeaways, MOT, holidays and cinema tickets. Plus, depending on your credit history, you can get up to £2,000 in overdraft. You also get access to TSB’s savings pots, returning 2.92% AER. You can save in a maximum of five pots, and you can save up to £5,000 in each.
The Spend & Save Plus account also qualifies in the switch deal but has a £3 monthly fee (£36 annually). This comes with everything you get with the Spend & Save account, plus fee-free spending worldwide with TSB’s debit card. Also, as part of the £2,000 overdraft perk, you can get the first £100 interest-free (depending on your credit history).
How does TSB compare to the rest of the market?
Only three deals remain on the bank switching market. TSB boasts the best cash bonus on the market, of up to £190.
Barclays comes in second, returning a £175 bonus for those who switch to the Barclays Bank Account or the Barclays Premier Current Account. Co-operative Bank takes the last spot, offering up to £160.
Here's how they compare.
This is a rare appearance from Barclays on the bank switching front – and while £175 is an attractive sum, there are some caveats. Although the eligible bank accounts are free to hold, you are required to opt into Barclays Blue Rewards, which costs £5 a month. This is ideal if you want to take advantage of a host of perks, for example an Apple TV Plus subscription and cashback with retailers. Plus, you get access to its 5.12% Rainy Day Saver.
Barclays Premier Current Account is also an eligible account, but to open the account, you need to have £100,000 in investments or savings with Barclays, or an annual income of £75,000 paid into the Barclays Current Account.
The deal from Co-operative Bank works in two legs – get £100 upfront and then £60 cashback. However, the big downfall here is, you need to switch to its Everyday Extra current account, which costs £15 a month. It's ideal if you are on the hunt for a packaged bank account, as in essence, your first 10 months are 'free' when you take the £160 bonus into account.
The bottom line is, there is no ‘best’ account to switch to, as it depends on what you need from a current account.
To compare the full range of deals and offers, see our guide to banks offering the best switching deals.
To compare the full range of deals and offers, see our guide to banks offering the best switching deals.
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